Abstract
Electronic Gaming Machines (EGMs) are a key source of tax revenues for the Australian states and territories permitting their operation. Due to their accessibility, they are also a major contributor to problem gambling and its impacts. This paper introduces the use of a concentration measure, the Herfindahl-Hirschman Index, in assessing the distribution of EGMs and the associated expenditure and tax yields that typically trigger gambling impacts. In its regulation of EGM gambling, the New South Wales (NSW) State Government has relied on ‘EGM density’, expressed as the ratio of resident adults to total EGMs in an area, to assess impacts. The approach proposed in this paper provides an alternative and complementary measure of distribution based on EGM numbers across venues within a defined area, which may also be applied in relation to other gambling modes and jurisdictions.
Acknowledgements
The authors wish to acknowledge two anonymous reviewers, whose contributions have assisted in preparing the paper for publication.
Notes
1. Amendments to the Gaming Machines Act introduced in 2009 changed the nomenclature of the SIA to a Local Impact Assessment (LIA).
2. That is, LGAs.
3. Current as at 4 June 2013.
Additional information
Notes on contributors
Mark Sargent
Mark Sargent is a Postdoctoral Research Fellow attached to the Chair of Public Policy, Faculty of Business and Law, University of Newcastle, Australia. He completed his PhD at the university in 2012. This article is largely based on material drawn from that doctoral thesis.
Kathryn Holmes
Kathryn Holmes is a Senior Lecturer in mathematics education at the University of Newcastle, Australia. She completed her PhD in financial mathematics in 2006 and has refereed publications in the fields of finance and education. She has also been the recipient of a national teaching award for outstanding contribution to student learning.